CALCULATOR I FULLSCREEN | pRINTER VERSIOIN : 4 BACK CES NEXT Problem 7-6 The bal
ID: 2412216 • Letter: C
Question
CALCULATOR I FULLSCREEN | pRINTER VERSIOIN : 4 BACK CES NEXT Problem 7-6 The balance sheet of Nash Company at December 31, 2016, includes the following. Notes receivable Accounts receivable $38,600 188,900 17,700 $209,800 Less: llwance for doubtful accounts Transactions in 2017 include the following. tudy 1. Accounts receivable of $148,500 were collected including accounts of $70,100 on which 3% sales discounts were allowed. 2. $6,130 was received in payment of an account which was written off the books as worthless in 2016. 3. Customer accounts of $17,900 were written off during the year. 4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $28,500. This estimate is based on an analysis of aged accounts receivable. Prepare all journal entries necessary to reflect the transactions above. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation Version 4.24 P1 8 John Wiley & Sons.Inc. All Rights Reserved. A Division of John Wisy s here to searchExplanation / Answer
Answers
No.
Accounts Title & explanation
Debit
Credit
Working
1
Cash
$ 1,46,397.00
[Total - Discount]
Sales Discount
$ 2,103.00
[70100 x 3%]
Accounts receivables
$ 1,48,500.00
[total A/R received]
(cash received)
2
Accounts receivables
$ 6,130.00
Allowances for Doubtful accounts
$ 6,130.00
(A/R reinstated)
3
Cash
$ 6,130.00
Accounts receivables
$ 6,130.00
(Collection)
4
Allowances for Doubtful accounts
$ 17,900.00
Accounts receivables
$ 17,900.00
(Written off account)
5
Bad Debt expense
$ 22,570.00
[See working below]
Allowances for Doubtful accounts
$ 22,570.00
(Allowance account adjusted)
Allowances for Doubtful accounts
Beginning Balance
$ 17,700.00
A/R Reinstated
$ 6,130.00
Written off
$ (17,900.00)
Unadjusted ending balance
$ 5,930.00
Adjusted Balance required
$ 28,500.00
Amount of Bad Debt expense [ 28500 – 5930]
$ 22,570.00
No.
Accounts Title & explanation
Debit
Credit
Working
1
Cash
$ 1,46,397.00
[Total - Discount]
Sales Discount
$ 2,103.00
[70100 x 3%]
Accounts receivables
$ 1,48,500.00
[total A/R received]
(cash received)
2
Accounts receivables
$ 6,130.00
Allowances for Doubtful accounts
$ 6,130.00
(A/R reinstated)
3
Cash
$ 6,130.00
Accounts receivables
$ 6,130.00
(Collection)
4
Allowances for Doubtful accounts
$ 17,900.00
Accounts receivables
$ 17,900.00
(Written off account)
5
Bad Debt expense
$ 22,570.00
[See working below]
Allowances for Doubtful accounts
$ 22,570.00
(Allowance account adjusted)
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